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Jim,
I too see some concerns moving forward. But to go
long in a large cap stock on Monday is not a bad
idea. I see a short term rally as well. But I
don't see us heading towards the old highs. To
many profit warnings still coming out and the
global economy is looking a bit sickly. So don't
be afraid to take some small profits and run if
you have some by Wednesday.
Harley
Jim Greening wrote:
>
> Onno,
> You may be right, I've been wrong before and will be wrong again.
> That's what my stops are for <G>. However, I can't help but notice
> the similarity in the major U.S. indices trend channel patterns to the
> Oct97 lows.
>
> Jim
> -----Original Message-----
> From: Onno Goedknegt <goedkneg@xxxxxx>
> To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
> Date: Saturday, August 22, 1998 9:23 PM
> Subject: Re: Weekly Pick
>
> >Jim,
> >
> >Thanks for your opinion and strategy.
> >
> >But I don't think we have seen the bottom of this correction yet.
> >
> >For the Dutch stock market the advance/decline and call/put-ratio
> give more
> >bad news for the near future...
> >
> >DJIA support 8300, when broken: price target 7300 (head&shoulder)
> >S&P500 support 1060, when broken: price target 940 (head&shoulder)
> >AEX support 1120, when broken: price target 920 (head&shoulder)
> >
> >Onno
> >
> >
> >At 14:55 22-8-98 -0400, you wrote:
> >>All,
> >> A choppy week for the market in which my portfolio dropped a
> >>little. However, I wasn't stopped out of any positions and now have
> >>AOL, BBY, DELL, INTC, and SMOD stock, CPQ LEAP calls, and about 30%
> >>cash. Also, the market action reinforced my thoughts that we have
> >>seen the market low for a while. The Dow Jones Industrial Average
> >>(DJIA), for example, is typical of the indices that I watch. It
> >>dropped Friday to test the 8/5 and 8/11 lows and they held. In fact
> ,
> >>it spiked through the bottom of the long term channel interday only
> to
> >>pull back and close well above the bottom of the channel. That's
> >>another indication that we have seen the lows for this correction.
> >>However, to play it safe, I'm going to stick with the large cap
> market
> >>leaders again this week. I may begin to add some small cap spice
> next
> >>week if we have a good week in the market. This week I'm going to
> >>move to the Drug & Pharmaceutical group and pick Warner-Lambert
> >>Company (WLA).
> >> WLA at 71.8125 is in an Intermediate Term Up Trend Channel
> >>(ITUTC) with the top at 90 1/8 and the bottom at 69. It's another
> >>momentum play that hit an all time high of 85.9375 on 7/20/98. It
> >>then pulled back to a low of 68.5 on 8/4/98 and has essentially
> moved
> >>sideways from there, getting close to the bottom of its ITUTC and
> >>breaking out of its short term down trend channel Wednesday. It may
> >>still move down a little more to touch the bottom of the ITUTC, but
> it
> >>also may not and this looks like a good entry point to me. The
> >>PDI-MDI and directional movement indictors look like they are trying
> >>to signal the start of a new short term up trend. The fundamentals
> >>are OK with the price/sales a little high at 6.27, the debt/equity
> >>good at 0.59, 7% insider ownership, good earnings and revenue
> growth,
> >>and a pipeline full of new products. I'll open a position Monday.
> >>I'll set my target just under the top of the ITUTC at 90 and my stop
> >>just under the bottom of the ITUTC at 68 3/4. I'll move the stop up
> >>to under the bottom of the short term up trend channel just as soon
> as
> >>it forms <G>.
> >>
> >>Jim
> >>
> >>
> >>
> >>
> >>
> >>
> >>
> >
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